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Candle Body/Shadow Ratio: Measuring Strength

Learn how to compare a candle's body with its shadows to gauge buyer and seller strength, helping you trade more effectively.

Mark · Trader & Founder, Social Forex

Candle Body/Shadow Ratio: Measuring Strength

Definition

The body/shadow ratio compares the length of a candle's body (the distance between open and close) with the total length of its shadows (wicks above and below the body). It helps you measure the strength of buyers or sellers during a trading session.

A long body with short shadows means price moved clearly in one direction. In contrast, a small body with long shadows indicates hesitation or failing momentum.

How to Identify

Look at any candlestick and compare the body size with the shadows. There are three main cases:

  • Long body, short shadows: Buyers or sellers are in full control. The Marubozu candle is a classic example, with almost no shadows.

    • A bullish Marubozu opens at the low and closes at the high, showing extremely strong buying pressure.

    Open = HighNo upper wickClose = LowNo lower wickBuyers controlled entire session — open = high, close = low of candle

    A bearish Marubozu opens at the high and closes at the low, showing dominant selling pressure.

    Open = HighNo upper wickClose = LowNo lower wickSellers controlled entire session — open = high, close = low of candle
  • Short body, long shadows: The market is undecided. A Doji candle has a very small body and long shadows on both sides, representing balance between buyers and sellers.
    • Open ≈ CloseUpper wickLower wickTiny body = buyers and sellers in perfect balance → indecision
  • Balanced body and shadows: Strength is unclear, so wait for confirmation.

    • A simple rule: if the body takes up more than 60% of the total range, the candle is strong. If shadows take up more than 60%, the candle is weak or potentially a reversal sign.

    How to Trade

    You can use this ratio to trade with the trend or to spot potential reversals.

  • In an uptrend: A strong bullish candle with a long body shows the trend is continuing. Look for a long entry during a slight pullback to support, or right after a strong close.
  • In a downtrend: A strong bearish candle confirms sellers are in control. You can sell into a rally toward resistance.
  • When you see long shadows: A small body at the end of a trend is an early warning of a reversal. Wait for a confirming candle before entering.

    • Real Example

    Imagine price has been rising steadily. Suddenly a bearish candle appears with a very long body, no shadows, and it closes below the lows of several previous candles. This suggests sellers have suddenly taken control. You should avoid adding long positions and may wait for a pullback to go short.

    Conversely, after a sharp drop, a doji or hammer with a long lower shadow appears. The market might be about to reverse. Combine it with the next bullish candle before buying.

    Common Mistakes

  • Looking at one candle without context: A strong candle near strong resistance can still be rejected. Always consider the trend and key price levels.
  • Ignoring confirmation signals: A strong candle without volume can be a trap. Combine it with volume and price action.
  • Confusing strong candles with reversal candles: A long body in a trend usually suggests continuation, not reversal. Only a small body with long shadows indicates weakness.

    • Content is for reference only, not investment advice. Forex trading carries high risk.

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